SNSW Market Update 19/10/2018

The past week has brought some decent precipitation to the area. Unfortunately, is has still been patchy with neighbouring properties receiving 1-5mm and 40-70mm. Those who received 15mm and above should see yield benefits. It’s expected barley harvest will kick off towards the end of October in northern and western areas of Port Kembla while wheat looks as though it will be the second half of November.

Wheat markets this week started firmer and have softened as a few tonnes came to market. 2017/18 SFW1 delivered Griffith Market zone started at around a $455/MT and is now closer to $450/MT for October delivery. New crop markets remain firm at around $485-490/MT Port Kembla track. There have been no real offers coming forward on this front as most are waiting to see what they harvest before making any decisions.

Old crop barley markets are still holding strong, but it’s expected they will drop back once new crop supply starts to hit the bin with new crop bids currently around $400-410/MT exfarm in Western Riverina. After saying this, barley supplies look as though they will remain rather tight going into 2019 so could bounce back to current levels should demand return over spring and summer to levels seen earlier in the year.

There has been a lot of talk over the past month around the amount of canola being taken through to seed and the amount being cut for hay. Those who’ve been able to take the crop through to seed should be rewarded with Nov/Dec delivered options at $638/MT Wagga, $681/MT Newcastle, $666/MT Footscray and Port Kembla track at $670-673/MT giving over $620-630/MT site pricing to most. This may be an early sell come harvest so even with prospects for supply being very low keep a keen eye markets as it starts to hit the bin.

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Pictured: Corn sowing time in Finley

Prices as at 18th October

* View of current market pricing. Does not represent current Agfarm bids.